Asda faces ‘multimillion pound’ hit if supermarket loses equal pay claim
Asda could be forced to make a “multimillion pound” payout if it loses an appeal on equal pay at the UK’s top court tomorrow.
The supermarket is waiting for the Supreme Court’s judgement after it appealed against a ruling that workers in Asda stores – who are mainly female – could compare their pay with depot staff, who are mainly male.
Exerts said the importance of the claim, which is the largest in the private sector with more than 44,000 Asda workers involved, can not be overstated.
Neha Thethi, head of employment at Lime Solicitors, said:“The importance of Friday’s Supreme Court judgment cannot be underestimated – it is the largest equal pay claim in the private sector, and has the potential to open the floodgates to further claims, not just across other supermarkets but other prominent retailers.”
In January 2019 the Court of Appeal ruled that the roles of shop workers could be compared to those of warehouse staff, upholding rulings made by an employment tribunal in 2016 and the Employment Appeal Tribunal in 2017.
The Supreme Court’s decision to hear the supermarket’s latest appeal was Asda’s final chance to argue the roles are not comparable.
Anne Pritam, partner at Stephenson Harwood, said if Asda loses it will be a “watershed moment for the rest of the retail industry”.
“Particularly those defending their own equal pay claims – such as Sainsburys, Tesco, Morrisons and Next – and which have similar staffing models and pay structures,” she said.
“Ultimately, if all of the retailers lose their equal pay claims, it is estimated they could face £8 billion in compensation payments to employees.”